This post will talk about the power of using a budget, compound interest and time.
The power of a budget
How many people know what they earn each week, and more importantly, what they earn? How much do you spend on coffee each week? Most people are surprised when they sit down and look at what they spend on each week. The regular costs of rent, electricity, gas, public transport, vehicle costs and the like add up quickly. Plus all the little costs such as lunch, coffee, snacks, a new book, some clothes and the like. Those little costs add up to be a big deal each week.
So a budget is a straight forward tool that allows you to see how much you earn each week, such as salary and wages, and from the PUBLISH0X website. This is on the left hand side of the budget and on the right hand side, The difference between the columns is how much you have left over each week to spend, save or invest in crypto :)
Here is a great video of starting a budget:
After creating your budget, you may well find spare money that you can invest in crpyto! Woo hoo! One less coffee a week perhaps?
The magic of compound interest
With normal money, you can invest it over time in a savings account, or bonus saver account, a term deposit or into investments. Even with crypto now, you can invest your money into Defi and earn interest on your crypto holdings. The magic of compound interest lies in the length of time. Each time you get paid interest, it adds to your total balance. This means that the next time you are paid interest, you will be paid more. Essentially, you will earn interest on your interest.
So the sooner you start, the sooner you can start to earn more and hopefully, work less!
Here is a great link to calculating compound interest - Compound interest calculator
So the longer, you leave your money or crypto invested, the more you will earn. There is nothing better than earning interest on the previous interest!
Have a great day!
